Correlation Between X Trade and Medicalg
Can any of the company-specific risk be diversified away by investing in both X Trade and Medicalg at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining X Trade and Medicalg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between X Trade Brokers and Medicalg, you can compare the effects of market volatilities on X Trade and Medicalg and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in X Trade with a short position of Medicalg. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Trade and Medicalg.
Diversification Opportunities for X Trade and Medicalg
Excellent diversification
The 3 months correlation between XTB and Medicalg is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding X Trade Brokers and Medicalg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medicalg and X Trade is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on X Trade Brokers are associated (or correlated) with Medicalg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medicalg has no effect on the direction of X Trade i.e., X Trade and Medicalg go up and down completely randomly.
Pair Corralation between X Trade and Medicalg
Assuming the 90 days trading horizon X Trade Brokers is expected to generate 0.61 times more return on investment than Medicalg. However, X Trade Brokers is 1.64 times less risky than Medicalg. It trades about 0.1 of its potential returns per unit of risk. Medicalg is currently generating about 0.04 per unit of risk. If you would invest 2,382 in X Trade Brokers on September 3, 2024 and sell it today you would earn a total of 4,700 from holding X Trade Brokers or generate 197.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
X Trade Brokers vs. Medicalg
Performance |
| Timeline |
| X Trade Brokers |
| Medicalg |
X Trade and Medicalg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X Trade and Medicalg
The main advantage of trading using opposite X Trade and Medicalg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Trade position performs unexpectedly, Medicalg can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Medicalg will offset losses from the drop in Medicalg's long position.| X Trade vs. Santander Bank Polska | X Trade vs. Noble Financials SA | X Trade vs. SOFTWARE MANSION SPOLKA | X Trade vs. Alior Bank SA |
| Medicalg vs. Monnari Trade SA | Medicalg vs. Movie Games SA | Medicalg vs. Road Studio SA | Medicalg vs. X Trade Brokers |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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